5 reasons to hire an accountant if you’re a property landlord

 In Property

Becoming a buy-to-let investor is a popular alternative to a traditional pension, as well as an appealing option for entrepreneurs who want a business based on bricks and mortar.

However, like any form of investment, it pays to have good financial info and advice when you’ve decided to become a property landlord, and that’s where specialist landlord accountants can really help.

Here are 5 reasons to hire one:

1. Keeping rental accounts in order

Having orderly rental accounts at your fingertips is the only way you can judge the success of your buy-to-let business. It’s easy to lose track of all those tins of paint, inventory charges, etc, or to let the occasional missed rental payment slip through the net, but you need an accurate picture of what’s coming in and out of your buy-to-let business every month. A good accountant will be able to help you compile that information, and then turn it into meaningful rental accounts.

2. Accessing real time financial info

Modern accountants work with modern software, like Xero, to give you an accurate financial picture of your enterprise at all times – not just at year-end. This is crucial information to have at your fingertips. How else can you know whether your enterprise is running at a profit or a loss, whether you’re charging enough rent, spending too much on renovations, not budgeting enough for repairs, etc? Knowledge is power, so choosing an accountant who helps you to learn more about the financial health of your business is one of the best commercial decisions you will ever make.

3. Claiming all self-assessment expenses

Did you know that you can offset your mortgage interest against your self-assessment tax bill? Do you carry out your paperwork and advertising from you home? If so, you may be able to claim some tax relief. Specialist landlord accountants know exactly what sort of tax savings can be made in your particular case and will prepare your self-assessment tax return on that basis.

4. Planning for Capital Gains Tax

Even if you bought your property with the intention of renting it out, you may one day want (or need) to sell it. Any property that is not your primary place of residence is likely to be subject to Capital Gains Tax, whereby the government takes a share of any profit you make. Your accountant can help you plan for such an eventuality.

5. Having financial help on call

Perhaps the best advantage of all in hiring an accountant with property landlord expertise is that you have an expert at your beck and call. You can consult them when important business decisions need to be made, e.g: ‘Can I afford to buy another property?’ or ‘Is my cashflow strong enough to fund a property renovation or will I need external finance?’ Your accountant is duty-bound to give you impartial and bespoke advice, to help you make the best decisions possible and run a financially sound enterprise.

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